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enterprise resource planning (erp) quizlet chapter 1&2
pros and cons of enterprise resource planning
pros and cons of enterprise resource planning
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1. Introduction: This report is the analysis and commendation of Pete’s business and how and where ERP system can be implemented to reduce the business complications. The company with 113 outlets and multiple sales channels, supplies both homegrown and off-the-shelf system to its customers. With 1,500 grocery stores, corporate offices, a website, and delivery trucks, the company was able to increase its revenue by 23% over a year which is remarkable. However, the outdated system which used to handle core business functions such as financial, order management, inventory management, fulfillment procurement and manufacturing was unable to cope with the ever growing business demand, which in result was effecting both the sales and operation. Subsequently, the company has decided to start fresh with current market demand. Even though the company needs a comprehensive ERP system, the CEO still desires to reinforce existing systems by customizing and patching. If approved, the project would cost $2.5 million for design and development and $6 million in total. In such scenario, we are going to support the idea of buying new ERP system by showing technical advantages, organizational advantages, and cost and future benefits of the ERP system. 2. Discussion: 2.1 Technical Benefits: At the most basic level, ERP is a system which aids to move data between different computers using various software. The ERP system integrates the practical systems used by the organization to manage the basic purposes of the business, such as: planning, inventory/materials management, accounting, human resources, purchasing, manufacturing, finance, marketing and sales, services etc. The new system will eliminate labor-intensive manual processes and current... ... middle of paper ... ... http://www.greenbeacon.com/GreenBeaconWebsite/Microsoft-CRM-ERP-Solutions/EnterpriseResourcePlanningERP.aspx http://www.enterprisecioforum.com/en/blogs/kevin-beasley/future-erp-and-how-it-will-impact-manufa http://www.scribd.com/doc/31114254/challenges-in-implementing-ERP http://www.technologyevaluation.com/research/article/The-5-Biggest-Challenges-When-Implementing-ERP-for-the-First-Time.html http://books.google.com.au/books?id=tdByvMeogZ0C&pg=PA13&lpg=PA13&dq=enterprise+resource+planning+Operational+Challenges&source=bl&ots=qHFgWxIVaO&sig=iZkDPASc4JTPQ6Uqqx89EjM2M0w&hl=en&sa=X&ei=5OvDUrm6O-KAiQfFmYDADA&ved=0CDYQ6AEwATgK#v=onepage&q=enterprise%20resource%20planning%20Operational%20Challenges&f=false http://www.scribd.com/doc/97181297/Enterprise-Resource-Planning http://blog.sageerpsolutions.com/challenges-to-watch-for-in-the-future-of-enterprise-resource-planning/
This paper addresses the issues being faced by the ERP Systems, how the problem was approached and led the search for answers to the achievement of the objectives. The subsequent are the queries that have been addressed in this research.
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
- Scheer, A, Habermann, F, 2000, "Making ERP a success", Communications of the ACM, 43 , 3, 57-61.
The last decade can be marked as a period of significant changes in the business world. Being accustomed to utilize computers as a powerful tool with its office applications such as Microsoft Word and Excel. In the 1990s office workers first faced the opportunity to share information using the Internet (McNurlin, 2009). However, the situation became even more different with the transition to the third millennium. With a further development of information technologies, the majority of big enterprises had to reconstitute their business processes and to make the transition to the Internet economy. Enterprise resource planning (ERP), supply-chain management (SCM), customer relationship management (CRM) software and the variety of other information systems became essential components of the new economy. It can be expected, that all these complex solutions were designed to bring great benefits for different sides of the corporate activity, in particular, decisions made by top-managers are expected to become nearer to the ideal, customer service is to be improved and collaboration more prolific. Nevertheless, to ensure the desired results it should be taken into account that the key concept of these reorganizations is an information or a data, dealing with which can be a serious issue, and wide utilizing of the data warehouses in contemporary organizations confirms this fact.
The ERP systems put a pressure on the whole organization. Although the modular system, they are complex enough for making major changes, so the basic functions should be adapted in a way that ERP systems require. Whole culture has to be changed because now the mid-managers tasks’ are performed by the software. This also changes the organization which used to more centralized and vertical. Every sub-department can reach the information, hence, decide more autonomously. However, on the basis of information, the ERP systems may create a more command and control style organization. Because after the implementation of ERP systems, there is a clear and stricter way to carry out the function, the way ERP software requires. In the light of those changes, the strategy should be reviewed and changed.
To conclude, a sophisticated accounting system like ERP plays an important role within a company like JPL. The system facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory, and so on. ERP provides complete integration of the system not only across departments but also across the entire company. Not only that, ERP also provides an opportunity for improvement and refinement in the business processes on a continuous process.
The Enterprise resource planning (ERP) and Human Resources Information System (HRIS) are both high technology systems and there are some similarities and the differences. There similarities are the (HRIS) system accuracy of information and the (ERP) system duplication of information is quickly, definid. However, the differences are the new (HRIS) is costly update the and (ERP) system will most likely be aadaptable to the hardware in the
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)
The enterprise resource planning (ERP) system is the main contributor of fundamental decision-making process. A greater efficiency will be created by storing our business’s critical knowledge that determines the decisions that drive performance in one accessible location. Using the ERP system will create a collaboration between department; therefore, removing the independent department decision-making process that can cause issues when one department does not communicate with another department.
2. What are the advantages of ERP systems over standalone software packages? Reference winman.com ERP software is basically a business management system with various integrated comprehensive systems that can be used to manage and integrate
There are number of benefits of using ERP software such as SAP. But, there are certain conditions which help in achieving these benefits like education and training of the employees, people i.e. IT personnel, established metrics, resources, and responsible management who can discipline upon users and facilitate organizational learning. Staehr, L. B. (2012).
Analysis of ERP implementation reveals the fact that not only installing the ERP softwares wil start giving benefits to the companies.But there is a need to consider certain facts such as sustained management support,user involvement,trust between implementation partners,ERP implementation strategy and proper planning etc. Lastly,it is strongly recommended that the management and the users should work together to get the maximum benefits.
E-business refers to the application of technology with intentions to improve an organization’s business dealings. The implementation of technology is on a basis of diversified areas linked to a business’ internal procedures like the human resources, monetary systems, along with administrative systems. There are external operations associated with the business that the technology improves like sales with marketing, procurements, and customer relationships. Any business operations that an organization conducts through a computer interceded network has reference as e-business (Napier, 2006). Through an incorporation of e-business in a business, three processes undergo enhancement. The three key processes, enhanced via integration of e-business include production, internal administration, along with consumer-focused processes.
ERP is software that manages information for all departments within a company. Its objective is to get the right information to the right person at the right time. ERP software is typically modular but integrated. It consists of multiple modules that are connected to each other so there is a communication flow. Each module is focused on one area of business procedures. Companies may pick which modules they want integrated into their specific system. Some of the many options of areas of operations include: product planning, manufacturing processes, sales, marketing, finance, human resources and procurement (Davenport, 1998).